BUFFALO, N.Y.
–
Attorney General
Andrew M. Cuomo
announced today that
a Western New York
debt collection
company that engaged
in deceptive and
abusive practices
will reform their
business and pay
$35,000 in penalties
and costs under a
settlement agreement
with his office.
Aurora, Gold &
Associates,
LLC of Williamsville
began operations in
April 2007 and
engaged in illegal
practices including
collectors
pretending to be
attorneys,
threatening
consumers with
fictitious lawsuits
and discussing
confidential debtor
information with
unrelated parties.
“It is not
acceptable for debt
collection companies
to harass consumers
to the point where
they overstep legal
boundaries,” said
Attorney General
Cuomo. “Collecting
money from debtors
is one thing, but by
using dishonest and
illegal tactics,
this company misled
consumers and
violated the law.
This agreement
requires that it
reform its business
practices to be in
line with New York
state and Federal
laws.”
Tactics used by
Aurora Gold
included repeatedly
calling debtors’
family and friends
in attempts to find
addresses and other
information, despite
requests to stop
calling. The
Attorney General
also found that
Aurora Gold’s
Web site contained
statements that
created the false
impression that it
was a law firm and
could sue debtors.
In one instance,
a collector –
pretending to be an
attorney – left a
message on a
consumer’s answering
machine in which he
told the consumer
that there was a
“pending civil suit”
against her.
Aurora Gold
was forced to fire
this employee after
the incident was
brought to the
company's attention
by the Attorney
General.
In addition to
paying $35,000 in
penalties and costs,
the agreement
requires
Aurora Gold
to immediately
institute a number
of reforms to
correct its current
practices and to
ensure that it will
deal with debtors
and third parties
fairly and according
to the law.
Aurora Gold
must also file a
report with the
Attorney General by
July 30 proving that
it is operating in
full compliance with
the Attorney
General’s agreement.
Under federal
law, debt collection
agencies are allowed
to contact
individuals by
various means, but
they are restricted
from contacting
debtors at
inconvenient times
or places (e.g.
before 8 a.m. or
after 9 p.m.). The
Federal Fair Debt
Collection Law
prohibits agencies
from contacting
individuals at their
place of employment
if the agency knows
that the debtor’s
employer
disapproves. Debt
collection agencies
are barred from
engaging in abusive
and unfair tactics
and misleading
representations,
including:
New York State’s
Debt Collection
Procedures Law
offers additional
protections such as
prohibiting:
